Foreigners buy Korean stocks for 3rd straight month in Jan. on chip sector recovery hopes

SEOUL, Foreign investors scooped up Korean stocks in January for the third consecutive month on the back of hopes for a recovery in the chipmaking sector, central bank data showed Tuesday.Offshore investors bought a net US$2.51 billion worth of local stocks last month, following $2.52 billion worth of purchases the previous month and $2.64 billion buying in November, according to the data from the Bank of Korea (BOK).The central bank said foreigners' net stock purchases came amid the outlook for a rebound in the chipmaking sector despite woes over a delay in restrictive monetary stances in major economies.Last year, foreign investors bought a net $8.16 billion worth of local stocks, a turnaround from selling of $6.09 billion in 2022 and $17.44 billion in 2021, the central bank data showed.Foreigners sold a net $1.89 billion worth of local bonds last month, compared with net selling of $7.9 million a month earlier.Meanwhile, the premium on credit default swaps (CDS) for South Korea's five-year dolla r-denominated currency stabilization bonds amounted to 29 basis points in December, up from 27 basis points the previous month. A basis point is 0.01 percentage point.The CDS premium reflects the cost of hedging credit risks on corporate or sovereign debt. A rise implies a drop in the credit spreads of sovereign bonds and higher borrowing costs.Source: Yonhap News Agency